Today, auto pension plans are underfunded and the American auto industry confronts a host of financial problems: Very high fixed costs (e.g., GM says its cost per hour for U.S. employees was $78.39 in 2003), global excess capacity, rising gas prices, and price deterioration due to costly rebates.
There is the simple problem of work force demographics. Auto workers are getting older and retiring. There are not enough new workers – or profits – to support this growing pool of retirees with contracted benefits. GM/Delphi already have 2.5 pensioners for every active worker and 60 percent of UAW members in that firm will be eligible to retire within 5 years; each car and truck sold by the Big Three is said to carry $900-$1,900 in legacy costs.
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Does your pension have enough gas?
4. Where do I go to find out about my pension?
5. Contact info for auto companies
